What matters on Friday, October 14

Central Bank Governor Sahap Kavcioglu, visiting Ankara Chamber of Commerce (ATO) Chairman Gursel Baran and the organization’s Board of Directors, stated that Turkey is the only country where there isn’t a risk of recession when the issue is frequently brought to the agenda, especially in Europe. Sahap Kavcioglu also said that economic policies have been implemented to support the investment and production environment and the loan interest rate is implemented at a level below the average of the last five years. The policy rate stands at 12% while the Treasury’s interest rate for borrowing is at 9.9% and the commercial loan interest rate, which was at 23% last year, fell to 18% this year, according to Kavcioglu.  Stressing that the monetary policy and macro-prudential measures implemented since the end of 2021 have raised the share of TRY in loan composition, Kavcioglu added: “We aim for customers such as SMEs and tradespeople and agricultural credit cooperatives with more limited access to loans to continue their operations in a sustainable manner by obtaining the long-term and low-cost finance opportunities. We’ve started to implement a selective loan approach with macro-prudential policies that will raise investment, employment, value-added production, and exports.”

Turkey is determined to strengthen the Istanbul grain deal and to transport Russian grain and fertilizer to underdeveloped countries, according to President Recep Tayyip Erdogan. Speaking at a bilateral meeting with his Russian counterpart Vladimir Putin on the sidelines of the 6th summit of the Conference on Interaction and Confidence-Building Measures in Asia (CICA) in the Kazakh capital Astana, Erdogan added: “We may work on determining the name of countries. We must focus on poor countries rather than developed countries.” During the meeting, Vladimir Putin proposed to Erdogan that Moscow could export more gas via Turkey and turn it into a new supply hub, according to Reuters. Putin said Turkey offered the most reliable route to deliver gas to the European Union, and the proposed platform would allow prices to be set without politics. Erdogan did not respond in the televised portion of their meeting, but Kremlin spokesman Dmitry Peskov was quoted by the Russian news agency RIA as saying both leaders had ordered a rapid and detailed examination of the idea.

National Defense Minister Hulusi Akar met with his Greek counterpart Nikolaos Panagiotopoulos as part of NATO defense ministers meeting in Brussels. The duo discussed regional defense and security issues. Akar also met with his US, German, French and British counterparts. During his meetings, Akar stressed that Turkey, as a member of NATO for over 70 years and with the second largest army in the bloc, contributes greatly to Euro-Atlantic security and that export restrictions on Turkey have weakened Euro-Atlantic security. Moreover, he reiterated Turkey’s call for solidarity in the fight against all kinds of terrorist groups, particularly the PKK/YPG terror group. Touching on Turkey’s support for Ukraine and efforts to ensure a cease-fire, Akar also stressed the importance of diplomacy in the ongoing Russia-Ukraine war.


House sales dropped by 22.9% to 113,402 units in September, compared to the same month last year, according to the Turkish Statistical Institute (TurkStat).

The Producer Price Index of Agricultural Products (Agriculture-PPI) jumped 156% in September, year-over-year, according to TurkStat. Agriculture-PPI surged by 7.14% on a monthly basis.

The number of paid employees rose by 7.5% to 14.7 million in August, compared to the same month of the previous year, according to TurkStat.

Private sector’s outstanding loans received abroad declined by USD 5.9bn to USD 162.9bn in August, compared to the end of 2021, according to the Central Bank.


>> Foreigners’ net equity, government debt securities, and corporate bond outflow from Turkey reached USD 136.3m, USD 86.8m, and USD 2.7m, respectively, in the week ending on October 7, according to the Central Bank.

>> Residents’ FX deposit accounts increased by USD 2.25bn in the week ending on October 7, compared to the previous week, according to the parity-adjusted data from the Central Bank.

>> The Central Bank’s international net reserves rose by USD 2.71bn to USD 12.44bn in the week ending on October 7, compared to the previous week. The bank’s total reserves surged by USD 6.92bn to USD 113.97bn in the same period.

>> Borusan Holding’s subsidiary Borusan Cat has received a USD 60m loan from the European Bank for Reconstruction and Development (EBRD). The amount will be used for the company’s operations in Kazakhstan.

>> Electromechanics manufacturer Astor Enerji, which has shifted to the registered capital system, will apply to the Capital Markets Board of Turkey (SPK) for an IPO by the end of this year, according to Hakan Unsal, General Manager of Astor Enerji. The firm aims to record an annual turnover of USD 370m this year.

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